Unlocking Youth Innovation

White Paper

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Unlocking youth innovation

Executive Summary

This white paper explores the systemic barriers faced by under-represented young people in accessing entrepreneurship and presents a scalable, community-anchored model that can bridge the gap. From those out of work or education, to care and prison leavers, and other marginalised groups, there is vast untapped potential waiting to be unlocked. A particular focus is placed on the importance of digital technology as a pathway to entrepreneurship in the modern economy, and the potential for such interventions to boost economic capacity for individuals and communities alike.

• 1. Evidence
• 2. Opportunity
• 3. Theory of Change
• 4. Evolution
• 5. Economics
• 6. Solution

1. Evidence

Unequal Access to Entrepreneurial and Digital Pathways

Young people from underrepresented backgrounds - including those from low-income households, minority ethnicities, and care or prison leavers - encounter intersecting barriers to entering the entrepreneurial space.These barriers are economic, structural, and cultural. Though many possess the talent and creativity to lead change, few have the access to tools, networks, or financial resources to realise their potential.

Access to networks and capital

Young people from marginalised and low-income backgrounds face systemic exclusion from traditional funding and support systems.75% of funded start-up founders come from advantaged socio-economic backgrounds [8].Only 1% of UK VC funding goes to Black founders; less than 0.25% to Black women [2].

Digital Skills Divide

Under-represented youth face compounded disadvantages due to lack of digital access and essential 21st-century skills.300,000 18–24-year-olds lack home internet access in the UK [3].Over half of employers report a digital skills gap among young people [4].

Social and Structural Barriers

Negative perceptions of business, lack of guidance, and structural discrimination deter entrepreneurial engagement.82% of young people from low-income households see entrepreneurship as inaccessible [6].Nearly half of prison leavers are reconvicted within a year, yet entrepreneurship can offer a powerful reintegration pathway [1].

2. opportunity

Inclusive, Digital-First, Community-Powered Entrepreneurship

To overcome these barriers, there is a need for targeted, inclusive entrepreneurship models that build on lived experience and offer accessible routes to business creation.We propose a unique intervention that empowers underrepresented young people through a wraparound support model combining funding, mentorship, skills development, and community engagement.

• Opportunities for Growth
• Home

Micro-Grants

Seed funding disbursed in stages to develop and test ideas.

Mentorship

Access to expert mentors from industry, technology, and social impact.

Peer-to-Peer Learning

A cohort-based model that fosters mutual support, shared growth, and collective resilience.

Digital Skills
Training

Access to modules on web design, digital marketing, e-commerce, and AI tools.

Digital
Platform

A user-friendly, mobile-first environment for skills-building, collaboration, and progress tracking.

4. Evidence

Early Evidence and Proven Models

Evidence from the UK and globally demonstrates the effectiveness of inclusive entrepreneurship interventions, especially those that blend digital and peer-led approaches:

UnLtd

Found that 80% of young social entrepreneurs cite lived experience as a key strength, but struggle to access support [9].

Prince’s Trust

Offers business training and mentoring to disadvantaged youth, with strong outcomes on confidence and economic participation [6].

Catch22

Helps youth and prison leavers that are unemployed or not in education to build employability through digital skills.

Scope

Scope's Extra Costs Commission highlights financial barriers faced by disabled people and proposes inclusive funding mechanisms [7].

Favela Inc & LakeHub

Show how peer-based innovation models can flourish in low-resource settings when youth are supported to lead.

Global Disability Innovation Hub

GDI Hub's groundbreaking approaches demonstrate how tailored, inclusive interventions can support disabled and underrepresented founders in low-resource settings.

5. evolution

Opportunities for Evolution and Impact

Each of these models contributes valuable insights, yet also highlights opportunities for deeper, more targeted support. The White Paper identifies their strengths while addressing critical gaps:

Deepen Access to Enterprise and Investment

While lived experience is acknowledged by these programmes, there remains a need to provide structured access to digital entrepreneurship and capital for those furthest from the system.

Bridge Skills to Ventures

These intiatives provide robust skills training, particularly for marginalised groups, but rarely create clear pathways from digital proficiency into business ownership and innovation.

Translate Insight into Action

Research-driven work shows where systemic barriers lie, but lacks the programme infrastructure to transform analysis into real-world economic opportunities

Localise Peer Innovation Within Scalable Models

Favela Inc and LakeHub highlight the power of grassroots, peer-driven ventures. This programme aims to translate that ethos into a UK-specific, replicable model that can serve multiple regions and communities.

Gap

The UK economy loses an estimated £39 billion annually due to the employment gap between disadvantaged and advantaged young people [4].

Potential

Raising youth entrepreneurship participation among underrepresented groups to the national average could contribute an additional £20–30 billion annually to GDP.

Returns

For every £1 invested in targeted youth entrepreneurship support, there is a return of £3–£5 in economic value over ten years [5].

Local resilience

Supporting digital entrepreneurship stimulates demand for local services, reduces unemployment, and builds economic resilience in underserved communities.

6. Solution

Level Up Collective

Level Up Collective represents a bold response to the challenges, evidence and opportunities laid out in this White Paper.It offers a unique contribution to the entrepreneurship landscape by building on proven models while combining distinct approaches to addresses unmet needs.What makes Level Up Collective different?

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Access to Enterprise and Investment

Unlike broader youth development initiatives, Level Up Collective explicitly targets underrepresented young people and provides structured pathways into venture creation and digital innovation. It addresses the funding gap by embedding micro-grants and mentorship into a cohesive development journey.

From Skills to Start-up

While other programmes are effective in skills development, Level Up Collective connects these skills directly to enterprise opportunities, fostering economic independence and long-term business growth.

Applied Systemic Insight

Level Up Collective translates valuable research on economic exclusion into hands-on support and real entrepreneurial outcomes, rather than stopping at policy recommendations.

Replicable Peer-Led Model

Inspired by grassroots innovation around the world, Level Up Collective offers a UK-centric, modular structure that retains the benefits of community leadership while enabling broader scale and sustainability.

References